On December 18, Congress passed the PATH Act, which renews and makes permanent the IRA Qualified Charitable Distribution provision of 2006. This provision makes it easier for Americans to give to causes they care about and will help local charities strengthen their communities by allowing individuals to roll over up to $100,000 annually from an Individual Retirement Account (IRA) to charity without being federally taxed.
Click here to see the announcement from the Council on Foundations.
Millions of Americans continue to save pre-tax dollars in their IRAs. The law allows taxpayers 70 ½ and older to share their wealth by giving retirement savings directly to charity—and bypassing income tax. (source: http://www.ici.org/research/stats/retirement/)
Annually, holders of traditional IRAs who are at least 70½ years old can make direct charitable transfers up to $100,000. Individuals may exclude the amount distributed directly to an eligible charity from their gross income. The Community Foundation of Harrisonburg & Rockingham County can help donors execute the transfers and choose from several charitable fund options for their gift. Please note that Donor Advised Funds do not qualify for tax-free IRA transfers.
Some charitable fund options at The Community Foundation of Harrisonburg & Rockingham County that do qualify include:
Field of Interest Fund—Connecting personal values to high-impact opportunities.
IRA transfers to Field of Interest Funds allow donors to target gifts to causes important to them: arts, education, neighborhood revitalization, youth welfare and more. The Community Foundation of Harrisonburg & Rockingham County awards grants to community organizations and programs addressing the donor’s specific interest area.
Designated Fund—Helping local organizations sustain and grow.
IRA transfers to Designated Funds allow donors to support the good work of a specific nonprofit organization—a senior center, museum or any qualifying nonprofit charitable organization.
The Community Endowment Fund – Meeting ever-changing community needs
IRA transfers to the Community Endowment for Harrisonburg & Rockingham County address a broad range of current and future needs. The Community Foundation asks local nonprofit to submit a description of their needs each year as part of the Community Needs Listing process. Grants from the Community Endowment are awarded annually to nonprofits on this listing to help meet the needs of our community.
Call The Community Foundation of Harrisionburg & Rockingham today at (540) 432-3863 to find out more about the IRA Qualified Charitable Distribution and how it can benefit our community!